For Developers/Builders

For Current Developers
This summary briefly describes for developers/builders the regulatory process for developing affordable housing units in Davidson. Please note that the actual laws implementing the affordable housing program in Davidson are found in Section 5 of the Davidson Planning Ordinance and the Guidelines and Standards (referred to hereafter as the Affordable Housing Ordinance) This summary is intended to supplement those sources - please refer to these laws to fully reference and understand the requirements of the affordable housing program.

Minimum Threshold & Percentage Required
The requirement to provide a certain percentage of affordable housing units applies to any new development in Davidson with 2 or more residential units. This requirement applies even if the development is phased in over time.

The percentage of affordable unis required is 12.5% of the total number of units in the development. The following is an example of how the Affordable Housing Ordinance can be applied: If a development application proposes 15 market-rate units and is required to provide 12.5% affordable units, then the development would be required to provide 1.8 affordable units (the amount of 1.8 is 12.5% of 15 market-rate units). The development would be required to build two affordable dwelling units because fractions .5 or higher are rounded up. One of the units should be priced to be affordable to a household that earns less than 80% of the AMI while the other should be priced so as to be affordable to a household that earns less than 120% of the AMI. The actual price will vary depending on the size and number of bedrooms. The 80% unit will, generally, be priced at $130,000-$145,000 and the 120% unit will be priced at $150,000-$200,000. A Payment-In-Lieu (PIL) is allowed for the all units. The PIL is $26,550 per unit. All PILs received from developers are placed in an affordable housing trust fund to be used exclusively for affordable housing activities.

Required Affordable Housing Plan
On the master plan, the developer is required to include notes that show compliance with the affordable housing requirements. The notes shall include the total number and distribution of the units. The site plan construction documents and/or preliminary plat submittal shall include an affordable housing plan or an agreement signed by the developer and an approved housing provider. The Planning Director and Affordable Housing Manager will work with the developer on the plan prior to its submittal to the Town Board for approval. The affordable housing plan shall include:

Total number of units , both market rate and affordable

The number of bedrooms in each affordable unit

Square footage of each affordable unit

Location of the affordable units

Pricing of the affordable units

Description of how the affordable units will be complementary to the rest of the neighborhood

A statement as to how the affordable units will be marketed

Whether a PIL will be made

An executed copy of the restrictive covenants that includes language about reducing HOA dues

The affordable housing plan must be approved by the Davidson Board of Commissioners.